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The real reason the giant, insolvent banks aren’t being broken up

Zero Hedge explains why the big banks aren’t being broken up, after demolishing the bogus reasons given as to why they shouldn’t be. Here’s the highlights. Read the whole thing, it’s long, detailed, with copious documentation.
Do we need the Too Big to Fails to help the economy recover?

Nope, plenty of economists say just the opposite.
Do we need to keep the TBTFs to make sure that loans are made?

Wrong, smaller banks are already moving into that void.

Have the TBTFs recovered, so that they are no longer insolvent?

Not hardly, they still have huge amounts of toxic glop on their balance sheets that they refuse to mark-to-reality.

So what’s the real reason?

As of the 1980’s the nine largest banks were already insolvent.

So the government’s failure to break up the insolvent giants – even though virtually all independent experts say that is the only way to save the economy, and even though there is no good reason not to break them up – is nothing new.

William K. Black’s statement that the government’s entire strategy now – as in the S&L crisis – is to cover up how bad things are (“the entire strategy is to keep people from getting the facts”) makes a lot more sense.

What makes this even worse is that government and investment banks seem nearly the same entity now, given the huge and obvious control the banks have over the political process, as they continue to transfer huge amounts of wealth from the poor and middle class to themselves.